Museum and galleries tax relief was announced in Budget 2016 in relation to the cost of developing temporary or touring exhibitions.
Following a consultation, the Government will broaden the scope of the museums and galleries tax relief to include permanent exhibitions so that it is accessible to a wider range of institutions across the country.
The rates of relief will be set at 25% of qualifying expenditure per exhibition for touring exhibitions and 20% for non-touring exhibitions with a cap of £500,000. The relief will take effect from 1 April 2017, and will expire in April 2022 if not renewed. The Government will review the tax relief in 2020.
This tax relief highlights the Government’s support for the creative sector and will mean that qualifying museums and galleries will be able to claim relief on significant amounts of expenditure. To qualify for the relief, the galleries and museums must (amongst other criteria) offer free entry to the public for at least 30 hours a week.